Stanley Druckenmiller says the Fed should get rid of forward guidance and just do their job.
I totally endorse a view by Stan Druckenmiller, the Fed Should Stop Forward Guidance.
Partial Video Transcript
Squawk Box: I’ve been perplexed about the unwavering focus the Fed has had on cuts for a six month period. … Did cuts make sense the whole time?
Druckenmiller: I was perplexed with the December pivot. … To some extent it seems they fumbled on the 5-yard line with the game on the line. I remember saying to some of my partners, that’s the speech I thought we might hear in March. … Instead they set financial conditions on fire. … And once financial conditions took off, it became very clear this thing could go either way. More curiously, why they and others continued to talk about, well, it’s not going to be six cuts it’s only going to be three cuts or four cuts. I’m going, why are we even talking about cuts? Because inflation, if you remember, we did trillions of dollars of QE because it was 1.7 percent instead of 2! But somehow now that we are at 3 vs 2 we’ve got to start cutting rates to bring in a smooth landing. Huge mistake. It goes back to Kevin Warsh, when he was in the running for the Fed job, used to talk about reforming the Fed. And I go Kevin, what is the major reform that we do? He says we’ve got to get rid of forward guidance. When you put forward guidance out, unlike me when I am wrong, I tend to change my mind very rapidly, they get trapped in the forward guidance, stuck in it. … Bizarrely, at the last press conference, the Fed seems to still be hanging on to this asymmetric directive of we are not going to hike and we expect to cut but we are going to wait for the data. … I don’t know where inflation is going to be in a year, Powell doesn’t know. I don’t think anybody knows.
Squawk Box: You think a hike is off the table? Definitely?
Druckenmiller: No, because there’s not a zero percent chance inflation has bottomed. I don’t know. What I would do is just say nothing, and do what a Fed chair used to do: When you need to raise rates, raise them; when you need to cut rates, cut them. Don’t go on 60 Minutes. You are not a rock star. You’re the Fed chair. You are supposed to be running monetary policy. Bernanke did a lot of things I don’t feel good about. One of the worst was forward guidance. You have a bunch of academics talking about sending a message to the markets. I would rather they get rid of forward guidance and just do their job.
The Fed is Uncertain About Uncertainty, So Why the Forward Guidance?
On September 22, 2023, shortly before the Fed’s pivot, I asked The Fed is Uncertain About Uncertainty, So Why the Forward Guidance?
The key words at the FOMC press conference is “uncertain” for good reason. The Fed doesn’t know what it’s doing.
Here is the image I posted then.
Hoot of the Day
Actually, it’s good that the Fed is uncertain because their expectations have not been close to the mark for a decade.
The above chart is particularly amusing. The Fed has only a 70 percent confidence level that interest rates three years from now will be in the range of of 0 to 5.5 percent.
That means the Fed expects that 30 percent of the time, rates will be outside that range.
From 2012 to 2019 the Fed kept producing interest rate charts showing hikes that never happened.
Then the Fed decided it was necessary to make up for lack of inflation.
Need to Make Up For Lack of Inflation
I’ve been discussing this for going on two decades.
Fed Uncertainty Principle
Flashback April 3, 2008 before the collapse of Lehman and Bear Stearns, to one of my all time favorite posts: Fed Uncertainty Principle
Most think the Fed follows market expectations.
However, this creates what would appear at first glance to be a major paradox: If the Fed is simply following market expectations, can the Fed be to blame for the consequences? More pointedly, why isn’t the market to blame if the Fed is simply following market expectations?
This is a very interesting theoretical question. While it’s true the Fed typically only does what is expected, those expectations become distorted over time by observations of Fed actions.
For example: If market participants are expecting the Fed to cut on weakness and the Fed does, market participants get into a psychology of expecting more cuts on more weakness. Here is another example: If market participants expect the Fed to cut rates when economic stress occurs, they will take positions based on those expectations. These expectation cycles can be self-reinforcing.
The Observer Affects The Observed
The Fed, in conjunction with all the players watching the Fed, distorts the economic picture. I liken this to Heisenberg’s Uncertainty Principle where observation of a subatomic particle changes the ability to measure it accurately.
The Fed, by its very existence, alters the economic horizon. Compounding the problem are all the eyes on the Fed attempting to game the system.
Fed Uncertainty Principle Recap
Fed Uncertainty Basis Principle:
The fed, by its very existence, has completely distorted the market via self-reinforcing observer/participant feedback loops. Thus, it is fatally flawed logic to suggest the Fed is simply following the market, therefore the market is to blame for the Fed’s actions. There would not be a Fed in a free market, and by implication, there would not be observer/participant feedback loops either.Corollary Number One:
The Fed has no idea where interest rates should be. Only a free market does. The Fed will be disingenuous about what it knows (nothing of use) and doesn’t know (much more than it wants to admit), particularly in times of economic stress.Corollary Number Two: The government/quasi-government body most responsible for creating this mess (the Fed), will attempt a big power grab, purportedly to fix whatever problems it creates. The bigger the mess it creates, the more power it will attempt to grab. Over time this leads to dangerously concentrated power into the hands of those who have already proven they do not know what they are doing.
Corollary Number Three:
Don’t expect the Fed to learn from past mistakes. Instead, expect the Fed to repeat them with bigger and bigger doses of exactly what created the initial problem.Corollary Number Four:
The Fed simply does not care whether its actions are illegal or not. The Fed is operating under the principle that it’s easier to get forgiveness than permission. And forgiveness is just another means to the desired power grab it is seeking.
And so here we are. Still discussing the same things, with the Fed making the same mistakes.
The Fed’s Big Problem
On average, the economy looks OK. But averages are misleading. Several large groups of people are struggling. They all have one thing in common.
The Fed is now trapped in a box of its own making. Everyone who is priced out of a home is very unhappy with soaring rent, soaring home prices.
If the Fed cuts rates prematurely, what does that do to housing prices?
For discussion, please see The Fed’s Big Problem, There Are Two Economies But Only One Interest Rate
Meanwhile, Powell sounds like a wizard reading chicken bones because that’s really all he is.
“On average, the economy looks OK.”
Where does that come from?
What is looking good?
Roads are collapsing, building mass withering away, planes falling down, massively increasing numbers of people don’t even have a place to live, healthcare “on average” is so inefficiently rendered that the silly hippy nonsense about even Fidelstan beating “us” isn’t even all that misguided anymore. There is virtually NO competitively exposed industry left which is not in complete freefall towards irrelevance; at the very best clinging on to achievements and competitive advantages built up decades ago, which are now in the midst of being thrown away over the next decade.
And all the while, “we”‘re barreling headlong towards 1 for 20 wrt mindless wars won vs lost. That superpower Grenada being the 1…. Despite 2 trillion/annum in deficits.
Competitiveness isn’t just non-existent compared to Asia, but indeed even compared to America as of a few decades ago.
I suppose “fracking” has been a lone bright spot over the past few decades. Along with rap music. The former has increasingly ran its course, leaving nothing but scarred landscapes fit for Mad Max behind. It did allow the now third worlders populating the US to avoid freezing to death for a decade or two, as everything else collapsed around them, though. The latter is now under threat from, of all things, Koreans. Ditto that other once-was-bright spot, movies.
For awhile, software was certainly a bright spot, but now the undifferentiated mass of pure and utter incompetent imbeciles being handed the reigns of this dump, has even ruined that. Such that now, the only way for “America” to obtain another software company of any significance, is to have illiterate retards of the Mnuchin kind, steal it from vastly freer, and superior-in-all-ways-but-weather, countries like China and Russia instead.
So what’s looking OK again? That 2 trillion of annual deficits, plus an additional 5-10 of debasement, manages to keep a sliver of the very least intelligent, least competent at anything and most useless of Americans, in some sort of illusion that the mold in their walls is magically creating value? Such that they can be “making money” from their “home” as it sits there decaying? As well as that they are similarly “making money” due to what the retards, and only retards, are dumb enough to believe are their “superior” skillzzz at having harebrained opinions about the future of random number series? Or is it those running around chasing ambulances, hence getting the Junta to help then steal from the rapidly decreasing few who still creates anything of value, who are “looking OK”?
Since,honestly, that’s all that is left in this third world dump anymore. “Making” anything in America now, consists of nothing other than buying it fully assembled from China, and putting a “designed in California” sticker; also printed in China; on it. Anything more involved than that, would required machinery, workforces and management experience and talent which has long since been parted out and sold off. In order to afford the rankest of “made money from my home and portfolio” retards; and only them; to continue their illiterate and child brained belief in tooth fairies and Santa Claus; as well as that mold in decaying housewalls, like mindless random number picking, is creating any value at all. It’s not. Hence America is not.
Mish wrote “ will attempt a big power grab, purportedly to fix whatever problems it creates. The bigger the mess it creates, the more power it will attempt to grab. Over time this leads to dangerously concentrated power into the hands of those who have already proven they do not know what they are doing.”
I wonder, what do they the bank want to do with the power?
Apparently the immediate goal is to deal with the current problem and “put things right.” They didn’t have any wisdom before the problem and they don’t have any wisdom after the problem on how to avoid such problems.
And worse, such power tempts people in ‘good times’ to pursue goals that are outside the Federal Reserve Bank’s charter, such as making things green, raising the income, wealth and status of minorities people of color relative to other people and more.
Something is fishy with the reports. Metrics are not changing.
Mish, is the title of this article a nod to Willow?
link to youtube.com
Powell thinks banks are intermediaries between savers and borrowers. That’s the pervasive error in macro-economics.
See the confusion:
working-paper-80.pdf (cato.org) Banks are Intermediaries of Loanable Funds
Powell destroyed deposit classifications and discontinued reserve requirements. Powell eliminated the scientific evidence that made the scientific method possible. So, now we will know less and less about money.
From the standpoint of the entire system, commercial banks never loan out, and can’t loan out, existing funds in any deposit classification (saved or otherwise), or the owner’s equity, or any liability item. Every time a DFI makes a loan to, or buys securities from, the non-bank public, it creates new money – demand deposits, dollar for dollar, somewhere in the system. I.e., all new and old deposits are the result of lending and not the other way around.
IMO, the Fed prefers to use sound and fury to placate the masses while the member banks loot and plunder them.
Yes, as Congress continually enacts fiscal policy that transfers wealth from the middle to the top, the FED handles the task of lending that wealth back to the middle, at a reasonable rate.
The ‘fed’? As they ‘print’ their way to feudal ownership of everything, the actual value of the property is falling even as the price goes up. It is correctly called Inflationary Depression, although this term is not to be heard in any ‘educated’ discourse.
Glorified perversion, social collapse, and a disinterested, sullen peasantry are the rewards of their foresight and unearned ascendance.
“The ‘fed’? As they ‘print’ their way to feudal ownership of everything, “
While I don’t debate the conflicts of interest in having bankers run the FED, solely focusing on the FED for all blame negates Congresses tax & fiscal policy at the behest of campaign donors that got us here to begin with.
Here is an interesting take, Col MacGregor suggests the best thing that happen to the US is an economic crisis. Clearly much better than a nuclear war which Biden seems to be flirting with.
link to youtu.be
“Chicken Bones”, cf South Park Season 13, episode 3, “Margaritaville”, which explains how the entire US economic system works, including The Fed.
Summary clip of episode: link to m.youtube.com
Just a remind to Jeff Green to quickly sale his EV fleet. Jeff… are you not worried that you might get ZERO for your EV if you wait much longer?
I’d definitely be worried if I was you. And as we know — anxiety is bad for your health. It disrupts your immune system… it impacts your sleep ….
Your doctor will then prescribe Xanax or whatever… which will blunt the anxiety … and turn you into a walking zombie.. throw in sleeping pills and you’ll end up a complete mess… addicted to the meds and on a downhill trajectory.
I am here to help you avoid all of that … all you have to do is snap some photos of your shiny coal-powered vehicle… and post an ad on Auto Trader… don’t bother to put a price — just advertise best offer… unload the entire collection asap…
And the anxiety will dissipate….
Hopefully you didn’t buy the vehicles on credit… heaven forbid… cuz that will introduce a whole new level of anxiety …. you’ll be losing a wad on the sale of the cars… and you’ll have to continue servicing the loans… arghhh…
I can’t really help you overcome that anxiety Jeff…. all I can suggest is buying lottery tickets… Good luck!
The slowdown in electric vehicle sales continues to snowball, with plummeting resale values acting as another roadblock.
Over the past year, used EV values have dropped faster than their gas-powered counterparts, car search engine iSeeCars said. The average price for a used electric vehicle fell by up to 32% while the average for a gas model slipped by 3.6%.
Tumbling resale values aggravate buyers’ worries that an EV isn’t worth the price or the potential headaches. They already worry about EVs’ high prices, charging, lack of choice, and driving range.
Now, they fear when it comes time to sell the vehicle, they’re not going to get much back.
link to usatoday.com
I don’t try to read the tea leaves. The best thing you do is improve your own lot in life. Forget about trying to predict the future or affecting Fed or political policy.
Got oil ?
As long as Jerome Powell is channeling his inner Paul Volcker things may be okay. Let a recession happen and inflation will calm down and the economy will normalize..Prices need to deflate by 30-40% on everything.
prices will not deflate if the Fed constantly teases markets with odds on rate cuts.
this is the point of the entire article.
They aren’t teasing rate cuts anymore. As inflation goes up, it is possible and likely they will have to hike until the economy dies. Demand destruction is necessary to contain inflation.
The problem is caused by massive government distortions of the economy, both regulatory and spending. Earlier the Federal Reserve enabled what government was doing. Now ?how to manage the consequences of that? Look at them forcibly subordinate the private economy to what government wants done.
Right. House prices didn’t decline until after 27 months of a tight money policy during the GFC. And monetary policy was constrictive for 48 months back then. And we’re only at 24 under Powell.
No one had complaints a few years ago when the Fed was throwing free money at everything and everyone.
Suddenly, the “free” money stopped and we have a host and comment section full of critics.
The Fed’s job, as Former chair Martin explained way back in 1955, is to take away the punch bowl just when the party is getting good.
Many Fed chairs have forgotten their “designated driver” role, and instead have dumped LSD into the punch bowl. They prioritized their own vanity and their selfish need to be on TV, everyone hanging on their next word.
Easy Al Greenspan, subprime appears well contained Bernanke, and dippy Yellen have been pouring LSD into the punch for so long we have nothing but addicts. Damn the two pushermen and one pusher woman.
Powell is the first Fed chair in 25 years to put Fed Funds roughly equal to existing inflation, instead of hundreds of basis points below inflation. After 25-30 years of Fed Funds being way too low (way below the change in cost of living), there is little institutional memory for neutral Fed Funds (ie roughly equal to inflation).
As for the concept of a central bank…. well all nationwide central planners fail. All of them. Its been that way for centuries. Read a history book so you don’t get surprised next time.
The Fed understates inflation by half or more. Interest rates at half the rate of inflation cause more inflation.
Perfectly said Willie and the drug analogy is a bullseye.
Ben Bernanke came up with the concept of Forward Guidance when he worked under Greenspan in the 1990s. Greenspan adopted it. For nearly three decades FG was effective. Bernanke’s main rationale for FG was that it allowed the FOMC to transmit monetary policy faster. By publicly voicing their intentions on future moves the Fed could influence financial markets and the economy ahead of the actual actions. I don’t see the current situation as evidence that FG is no longer effective. I see this as a failure of Powell and the FOMC. The Fed intentionally and irresponsibly chose not to remove accommodation when the economy reopened and Congress provided a significant fiscal impulse in early 2021. The Fed also chose to ignore early signs of runaway inflation in Q2-2021. The Fed erred with its dismissiveness of above trend inflation throughout 2021, erroneously attributing the hockey stick rise to nebulas “supply chain” kinks. The reality, which few people seem willing to acknowledge, is that we have an incompetent Fed Chairman.
Greenspan’s Great Moderation was successful because banks don’t lend deposits. Deposits are the result of lending. Since the DIDMCA of March 31st, 1980, the ratio of time deposits to checkable deposits rose. The ratio peaked in 2008. This lowered the transaction’s velocity of money. This raised bond prices. Velocity was further reduced by the payment of interest on interbank demand deposits which induced nonbank disintermediation.
Sen. Elizabeth Warren was against raising interest rates, and she was half-right. Higher interest rates would not squelch the sort of excess demand that was causing problems nor fix the supply chain issues that the pandemic caused. But, nobody discussed why we were getting inflation or more importantly how those things causing it could be fixed.
The metaphor I prefer is the FED drives a car forward looking only at the rear view mirror.
Yes, the Ph.Ds. don’t believe in monetarism, they don’t study the distributed lag effect of money.
WHAT DOES IT TAKE TO “MAKE IT” IN TODAY’S ECONOMY?
As described in Withdrawing from the Rat Race Is Going Global, the world has changed in fundamental ways that have made it much more difficult to “make it” into the ranks of the middle class, and even harder to claw one’s way into the higher reaches of the economic order, i.e. the top 10%.
In summary, developed economies have been stripped of secure, well-paid manual-labor work, the purchasing power of wages has declined, prices of assets such as homes have skyrocketed out of reach and the mass overproduction of elites (those with college diplomas and advanced degrees) has created a winner-take-all competitive pressure cooker with few winners and an abundance of also-rans.
In other words, the work-a-day world has become far more complex and far more demanding than it was two generations ago. It’s not just making enough to pay the bills that’s more demanding; the work is more demanding, as is everyday life, which now demands far more shadow work–work we do to manage life’s complexities that we’re not paid for. Having children is far more expensive and demanding, too, as the competition for upper-middle class slots now starts in Kindergarten.
Many individuals do not have the armor and weaponry needed to enter the arena and survive the competition. It’s easy to dismiss them as “lazy,” but that’s not the issue. It’s also easy to dismiss them as snowflakes, young people who have been shielded from life’s rougher edges by overprotective parents, leaving them ill-equipped for the slings and arrows of modern life.
But this isn’t the issue, either. The real issue is the social and economic demands now exceed the carrying capacity of many people. Where it was possible to find a secure low-level job that could support a household and find a place in society’s pecking order two generations ago with limited social / work skills, now it’s essentially impossible: low-level work is insecure and too poorly paid to support a household, and it is viewed as demeaning and unworthy of respect.
How do humans respond when they’re viewed as worthless and they feel hopeless? In the Hollywood script, they pick themselves up, dust themselves off, gather a discarded shield and sword off the blood-soaked sand of the arena and go out and kick some derriere. (“Take that, nepo scum!”)
Many people manage to do this and we applaud their grit and determination. But not every individual wins in this battle. Many pick up the shield and the sword and are immediately trampled. They make a realistic assessment that they can’t possibly reach the lofty goals demanded of them, and so they are effectively excluded from what is now considered “normal life.”
This comment on a Reddit thread speaks to the increasing demands of “normal life”:
I obviously can’t speak for everyone, but I can give some insight based on my own social withdrawal: modern life is overwhelming. It feels like there’s a lot that’s expected of you. In many ways modern life is a giant competition for wealth and status, but instead of competing just within your community, you have to compete with millions of people all around the world. It feels daunting, if not impossible. Why compete in a contest you know you can’t win? It’s pointless, it’s a waste of time and energy. I feel very much like, “well, what’s the point?”
So they drop out of the competition. Maybe they take a part-time gig job, maybe they move back home to take care of a parent or grandparent, or they become a recluse.
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Well said and keenly accurate. Thank you.
I down voted you because you included an entire article written by someone else, instead of just posting the link
If I just posted the link you likely would have not read the article…
I know a chunk of people doing multiple jobs and banking 50-75k per month. But they are only working a few hours a day. They are playing the system. And their employers don’t give them enough work but are happy to keep paying them.
The hard part is finding a reliable and secure “fence” to dispose of the merchandise. A trustworthy money laundry is necessary too.
This is brilliant. So spot on Eddy. Right on target even if you did not write it. All of the things that corporations used to do, could do, to make us effective citizens, is now expected to be done by each individual. (Damn the internet for making this even possible.) Why do *I* have to “log in” over and over again to “manage my account”? Shadow work. I spend more than an hour a day doing this, just to pay the god dmaned bills. My parents would give the bank their bills and they would get paid. The economy has become a battlefield that most can’t hack very well. Fuck it all.
Thanks for sharing the article . This does line up with what I see around me . People are in tough situations and when you add in that men and women aren’t getting married and the peoblems that brings from the angle of 2 people working for a common goal it really leaves a lot of +30 people in very bad situations and I see many of them they are miserable and really struggling to keep up and get started in life .
add to this the fact that modern women have rejected the custom of family formation.
i’m surprised that we still see men doing anything for anyone.
You seen what happens to a pregnant woman? I don’t blame them at all. I sure as hell wouldn’t go through that.
Start a heavy metal band.
Thanks-An excellent article. I’m 79 and remember the drop out culture of the late 60’s well. some things never change.
“We” are self setting up a French Revo 2.0
WAKE TF UP!!!!!!!
The financial oligarchy, which makes its wealth by outsourcing, is doing fine.
They are well FED.
No doubt. From my perspective the Fed has done a great job of inflating the debt of big leveraged players away screwing literally everybody who wasn’t connected enough to get low interest loans. The gamblers and hustlers have been rewarded handsomely while those that humbly go about building and maintaining stuff have been screwed. Not an America I am proud of
“get rid of forward guidance and just do their job”. It seems that the true job of the Fed has been to drive down the value of the dollar – down 96%, but only since 1913. My cat could have done a better job. But rather than being a fish like the Fed, my cat eats fish.
Simply reminds me to say…
Ron Paul is the greatest Patriot of our time.
He was the last candidate I felt good about voting for.
It’s an important observation and reminder to everyone who quotes statistics in the comments here, that all forms of averages and headline numbers, can easily conceal changes in the distribution of the numbers that these averages are made from.
You don’t need to understand probability and statistics to get that, but having some familiarity with maths is helpful – you can play around with a table of numbers in excel, and find ways to generate upbeat looking graphs by changing numbers in different categories, to illustrate how data manipulation does work and can work.
On the topic of the supposed “Fed Paradox”. It doesn’t sound like a paradox to me. A paradox would be something like “the sentence is false”, where if the sentence is true, then it’s false; and if it’s false, then it’s true.
Moreover, the data shows that the bond yield value tends to move first, and the EFFR value tends to move shortly after in the same direction. What really undermines the notion that Fed announcements steer the market is that a lot of bond market participants are foreign governments, who buy and sell bonds for reasons that are domestic to them, and not necessarily related to events domestic to the bond-issuing government. China, for example, has been selling off USTs and buying a lot of gold. This is to diversify away from USD, and to support their currency, it’s not because of comments by the US Fed, or concerns about the US housing or employment markets.
China’s exports to the US are affected much more by US government trade policy than Fed interest rate policy. Japan is another example of a nation who has non-Fed reasons to divest of USD-denominated debt.
If anything, it is the state of global trade that drives the bond yields, and that is the major lever on Fed interest rate policy. Powell doesn’t know because he can’t know the plans or intentions of foreign governments or other non-US bond market participants. Whatever positions US companies take depend on where their markets and profits lie, so yes, some of them care about Fed announcements, but others, not so much.
We might endorse Drunkenmiller for Fed but then he would not be HIM. He would be a dope smoking academic, acting as if they know something.
What does POWELL KNOW about the REAL AMERICA, made up of people who do NOT benefit from Free money (not for them, of course, they pay 20% plus on Credit Cards).
THE DEBT is the problem that no one CAN solve as it is now beyond control and has a life of its own.
One must wonder, are the foxes really guarding the henhouse, or are they actually the clueless clucking hens?
There was a financial crisis developing in late 2019 but the press was busy reporting on a mysterious new virus. Then trillions of dollars were unleashed to fight the virus. Coincidence?
Now all asset prices have been inflated approximately 50 percent and the general price level is up about 30% making the ridiculous debt levels worldwide a little less ridiculous. Coincidence?
Extend and pretend. It is all going to end very very badly.
The question is what is the Fed’s real job. Monetary policy is not one of them, given how bad their track record is. They should stick to financial stability.
Andy, COULD THEY DO SOMETHING ABOUT STABILITY? In free markets, there would be no such an ENTITY as the Fed. Bond Markets would set rates and the ebbs and flows of DEMAND would dictate Rates.
STOP THE FED.
The Ivy League boys club is ALWAYS right!
Ask a refinery worker about Henry Hub stores, construction company owner about his contract pipeline, retail district manager about foot traffic, yes, you’ll get some excellent insights…however…
Nothing at all compares to a boardroom full of 60 year old Harvard grads who know what it’s like out there, because they walk from the Land Rover to the office, every single day.
ha ha the Fed is in Schrodingers Box, they are both wrong and right at the same time.
The FED exhibits a measure of competence which has become commonplace among virtually all American institutions.
In most developed countries, it’s the inherent incompetence of the middle managerial class that is the problem. It’s the Peter Principle multiplied by the Pareto Law: the idea that 20% of managers are competent, and do 80% of the work; and vice versa.
I totally endorse a view by Stan Druckenmiller that assigns a failing grade to Bidenomics.
I equally endorse that view as well.
Me 2.
It isn’t Biden’s fault the Fed didn’t raise rates faster. The problem is a lot bigger than any occupant of the oval office. It goes back to a banking system that is destined to fail.
The third round of fiscal stimulus is Biden’s fault.
Student debt cancellation is Biden’s fault.
Inane regulations are Biden’s fault.
Ridiculous energy policy is Biden’s fault.
The Inflation Reduction act which increased inflation is Biden’s fault.
That the Fed could not see any of this coming is the Fed’s fault.
This is what happens when one party has too much power even for 2 years. Each party overplays its hand and then loses control of the house and/ot senate.
I blame the Fed the most for not raising rates sooner. That would have put the kibosh on a lot of money chasing after unproductive businesses.
The Fed forgot that it has to lead the political arms away from wrong headed policy. The Fed is at the top of pyramid scheme.
you forgot hundreds of billion$ to fund & expand wars on the other side of the planet (while communities in the US crumble & burn)… also Biden’s fault.
…and billion$ in free services for non-citizens whose max. contribution to US society will be filling min. wage jobs while avoiding prison… also Biden’s fault.
inflation + destruction of the $USD is part of the plan.
the Fed is fighting an inferno w/ a garden hose.
Every problem is bigger than the current occupant of the oval office.
Here I thought Biden was Our President, because that is the person “In Charge” and “Responsible” for 100% of everything that goes on in our Country.
Last I checked, the Leader is in charge, because THEY are the Leader…